ONGC's Q1 net down 34% on higher cost, write-offs

Moneycontrol Bureau

Oil & Natural Gas Corp posted a 34 percent year-on-year decline in profit in June quarter to Rs 4016 crore on higher costs and write-offs that hurt the PSU's margins. The firm had to adjust Rs 314 crore toward deferred taxes and it also provided Rs 1611 crore toward post retirement benefit scheme during the quarter. The firm has to shell out Rs 12620 crore toward subsidy payment to oil retailers which sell fuel at government rates. Sales also fell over 4 percent to Rs 19218 crore. Its EBITDA declined 23.7 per cent Y-o-Y  to Rs 8,488 crore on lower realisations. Depreciation expense increased by 22  per cent to Rs 3,901 crore. Read This: Lower net realisation at $42/bbl has disappointed: ONGC